This week’s question: “Where is the June impact from the stimulus checks?”

The short answer: “There was none.” Average spending in June was flat.

That was a big surprise. In May, all the electronic direct deposit checks were issued and one-third of all the paper checks were mailed, income and spending both surged. By July 11th, the remaining two-thirds of the paper checks were mailed. Income probably surged, but spending sure didn’t.

Big increases in credit card usage in April and May and a large increase in spending occured during May, but by June the temporary boost had already run it’s course.

It’s incredible, but it seems the entire stimulus package was spent in one month. Even the most pessimistic economists had hoped for a bigger bang. Consumers are now back to spending based on their wage gains, which have been declining.

Of course in that average are both winners and losers.

For the 19 apparel and teen apparel stores in the same store sale report, their average sales dropped by 3.2% from a year ago. That equaled a total drop of $342 million from a year ago. The stimulus checks didn’t help them out in June.

Other industies that suffered: auto and truck sales whose retail sales dropped 9.5% in June from a year ago, furniture sales were down 5.4% and miscellaneous store sales were down 2.9%.

So where did the stimulus checks go?

Primarily to gas stations whose sales were up 24% year over year (y/y) and grocery stores up 5.6% y/y. But also to discount stores as they focus on low prices and more importantly because they sell food. The six discount stores in the report had sales increase by 4.9%, but even that’s misleading. Target saw an increase of only 0.4% because they don’t sell as much food, and the remaining 5 discounters (all selling food) had sales increase by an average 5.5%.

But even the discounters weren’t too happy.

First, the spending is transitory. Wages are barely increasing and not keeping up with inflation. Future sales don’t look promising.

Second, consumers aren’t actually purchasing more. Food prices are up 5% over the last year, so the 5.5% gain we see at the food-selling discount stores merely reflects the price difference, not additional units moving out the door.

Where else were they spending?

Internet sales were up 8%, but this category unlike all others includes international sales, and with the dollar at record lows, America is on sale.

Health stores had a big 4% increase as well. Electronic stores were down from May, but up 5.5% from a year ago.

And the remainder of the stimulus checks appear to be headed for savings. With $4 at the pump, Americans are too worried to spend everything they get, and are saving to afford necessities down the road. The plan for companies is to stress their products aren’t a luxury but a necessity, perhaps focusing on how it can help buyers save money in the long run.

In our weekly “Ask the Economist” feature, our resident Economist, Mike Donnelly, will be tackling your questions about the economy. If you’ve got a question — and no topic is too big or small — you’d like him to field, e-mail us at economist@pbp.com or leave your queries in the comments section.